ALTKUZ, DON'T BLEED THE RICH !

ALTKUZ, DON’T BLEED THE RICH !

‘0% Tax, 100% Societal Gain’

Prasad Rao, PhD PennState

Director, AltKuznets Sustainability Advisors

In a per-capita-driven Nominal economy, Environmental Externalities are released in Production, Consumption and in post-consumption Disposal. However, and despite a formal Tax-based governance at the federal, state and Precinct tiers, successive Governments have preferred to focus on Social equity issues to the particular neglect of Environmental externalities. Further, the regulatory onus was directed almost exclusively at Production externalities across decades. Such wanton inattention to Consumer- and Consumption externalities resulted in exacerbation of air, water and land, as well as social externalities, in urban conglomerates where Households reside, grow their family, and consume toward raising their Lifestyle Quality. These externalities cumulate slowly and/or remotely, due which there is limited public cognizance, much less political, until cost-efficient, return-associated technologies emerge. Such Slow, Diffuse, & Remote Externalities (SDRE) constitute a significant, and increasingly widespread manifestation of Nominal externalities, public and political apathy, as well as the inefficiencies of local public governance. 

The Government taxes the Rich at the highest marginal rates for reasons disproportionate use of Public Infrastructure, and impacts on Social Equity, and implicitly, Consumption-associated externalities. Such taxes are bitterly resented and contested politically not the least for the insistence the Rich pay the full price, including externalities that are often sloughed and transferred to their economically-weaker cousins. However, the Rich, despite being significant contributors to the various environmental and social externalities, often find legal and RoW strategies to minimize taxes. Consequently, the burden of resolving their externalities falls on the future generations (Debt markets), the Bullion, Corporates, and the Voting Middle Class Public. Governments and Insurers raise Taxes, Gold prices and Policy Premiums to fund remedial Environmental-ESH policies or trigger dis-incentives. Factually though, there exist many alternatives to conventional taxation that extend to Land/Property/Asset taxation, Consumption taxes on expenditure, or taxation in the Capital markets. 

This IPR-protected strategy, offered with commercial interest by Alt-Kuznets Sustainability Advisors, offers an alternative ‘Crypto-cum-Sequential Bond Monetization’ strategy that pre-empts the necessity to tax the Rich, and yet obtains environmental, social and economic goals. It offers a design that restructures personal income taxes within a holistic design that re-orients Tax-payer incentives toward pro-active resolution of various SDRE externalities. The design internalizes those Consumption Externalities on an aggregate tier to a minimum, leveraging environmental incentives that save on Taxes. Compatible with other AltKuznets designs and proposals, it offers a commercial strategy, that when modulated through the SDRE Bond and the Bullion, obtains monetizations that fund potentially comprehensive coverage & attenuation of Consumption externalities concomitant with the nurturing of a sustainable Consumption economy.

Demand Increments for Environmental Products with AMT-linked Tax Cryptos

The proposed strategy applies broadly to the Rich, and those enriching amongst Middle-Class Households. It invokes an entire class of environmental products – Carbon Permits, Recycling Certificates, SDRE Bonds, Green Energy Purchase Certificates, and leverages them with TaxPayer Household Consumption Externality Coefficient, HCEC, and the Closed Cycle Score of Tax-payer Equity Bundle, EqCCS, in a novel way to offer meaningful and strategic options to the universally high-taxed Rich. If the Rich were permitted to transfer a self-determined fraction of their taxable Income, albeit above the Government-stipulated Alternate Minimum Tax, AMT, into a non-taxable, non-refundable, long-liened yet Crypto-tradable, zero-coupon Precinct LandBank-issued Sovereign Wealth Bonds, SWB, and which could be enhanced privately with environmental purchases, and traded toward individually-variable, untaxed redemption at arbitrary time-points, they'd consciously practice environmentally-sustainable Consumption to earn and win back their AMT-liened tax monies in the form of Crypto sale proceeds. This strategy substitutes short-run Income taxes with Budget-monetizable, Crypto-convertible and -tradable, AMT-derivative Sovereign Wealth Bonds, and ties its valuation to long-run Public Prudential indices and Private environmental indices to obtain a superior outcome characterized not only by terminal Precinct Capital consistent with the Public indices, but also by incentivization of sustainable consumption by those Rich who set societal trends for the masses to adopt in their follow.

Click here for further information